Closing the climate investment gap

Investments are in need around the globe to mitigate climate change, but it is in developing countries, where population growth and economic growth prospects are the greatest, that climate mitigation investments need to grow the most.

A column available on VoxEu, argues that closing the climate investment gap in these countries requires rechannelling of Special Drawing Rights to Multilateral Development Banks, which can bring down the currently often prohibitively high cost of climate finance to acceptable levels.

The authors Dirk Schoenmaker and Rens van Tilburg of the Sustainable Finance Lab/Beyond Bretton Woods write “Limiting climate change requires rechannelling of Special Drawing Rights to Multilateral Development Banks”.

VoxEU is the policy portal of the Centre for European Economic Research (CEPR) think tank.

The Global Challenges Foundation collaborates with The Sustainable Finance Lab, which is a transdisciplinary research center established to transform financial markets and to enhance the sustainable development of society.